DSE on recovery path, surges nine times

DAR ES SALAAM Stock Exchange has shown recovery in its activities as turnover surged almost nine times in the first week of this month.

The market’s equity turnover climbed to 2.38bn/- at the end of last Friday up from 268.5m/- to end the market slowness observed last month.

Alpha Capital Head of Research and Financial Analytics Imani Muhingo said the equity turnover in the first week of this month was two-thirds of the entire amount of last month, which was the slowest for the year so far.

“The weekly turnover for the week is already 66 per cent of the total turnover for the month of October,” Mr Muhingo said on Monday.

CRDB Bank maintained the top mover position, accounting for 67.5 per cent of the total equity turnover, followed by Twiga Cement (TPCC) which accounted for 12.9 per cent.

Ahmed Nganya, Manager, Advisory and Capital Markets at Vertex International Securities, said the stocks market showed a glimpse of recovery last week, echoing their last week’s forecast as volume and turnover posted a recovery.

“We expect [last] week’s momentum to continue [this] week as quarter three (Q3) earnings results continue to factor into prices,” Mr Nganya said.

Zan Securities report showed activities on the DSE registered high turnover in the wake of the new month, however, mixed investor sentiments resounded in the market as the domestic index (TSI) lost 0.44 per cent as a result of a slight sell-off in some domestic counters.

“However, in broader terms we expect domestic stocks to register an uptick in prices in the coming weeks, signaled by good earnings results for quarter three. This will propel more demand for respective counters,” said Mr Raphael Masumbuko Zan’s CEO.

The CEO further said the market is going to register an increase in liquidity in the weeks to come mainly in the banking sector, driven by good Q3 earning results published.

The quarter three earnings results of the two biggest banks in the country, NMB and CRDB, point to a very optimistic view of the banking sector.

“We are going to see this reflecting in their respective stock prices,” Mr Masumbuko said.

While NMB’s net profit shot up by 53.4 per cent to 323.58bn/- compared to 210.96bn/- in a similar period last year.

CRDB net income after tax increased by 53.1 per cent to 256.58bn/- up from 167.57bn/-recorded in the same period last year.

TCCIA Investment (TICL) was the most depreciated share going down by 14.89 per cent to close last week at 200/- per share, while Swiss lost 9.64 per cent of its value and closed the week at 1,500/-, Tanga Cement lost 9.23 per cent to 1,180/-,  DCB Bank lost 3.23 per cent to 150/-. Others are Twiga declined by 2.7 per cent to 3,600/-, NICO and NMB declined slightly by 1.52 per cent and 0.71 per cent closing off the week at 325/- and 2,800/- per share respectively.

Total market capitalisation went down by 1.1 per cent to 15.497tri/- and domestic market capitalisation dropped by 0.44 per cent to 10.125tri/-.